Sioux Falls council gets first look at proposed TIF transparency

Feb. 12, 2014

Greg Jamison

Written by

The Sioux Falls City Council got its first look Tuesday at a proposal that would disclose the investors in developments that receive special funding through tax increment financing.

Councilor Greg Jamison presented an amendment to the TIF ordinance but is planning a few changes before the next reading.

Instead of requiring each investor to list his or her name on the application for TIF financing, he’s asking that those with a stake of 10 percent or more disclose that they’re invested in the project.

Jamison said he wants to add transparency to the TIF program. The perception is that TIFs are granted to only a few developers, he said, but this will show there are many others involved.

“It will help educate the public about TIFs, who’s getting it and what’s getting done with it,” he told fellow councilors at their informational meeting Tuesday.

Jamison raised concerns last fall and said that those involved with approving a TIF project, namely the City Council and the mayor, should not be invested it.

Jamison also is backing off on his request that the city track TIF investors for as long as the TIF is active. Instead, he’ll be asking that new investors who sign on in the first three or four years identify themselves.

He said the changes are good compromises.

The council did not discuss the matter Tuesday. Councilor Kermit Staggers has agreed with Jamison on the issue in the past, but councilors Dean Karsky, Michelle Erpenbach and Jim Entenman have said they feel the city already is watching TIFs closely.

A second reading, when the council takes public testimony and votes on the ordinance, was postponed to March 4, when Entenman can be present for the discussion.